The Deepening Of Inequalities In Latin America During And After The Covid-19 Pandemic

Abstract

Abstract: Latin America continued to experience social, economic and political turmoil in 2021. The vulnerabilities set by preexisting conditions such as persistent inequality, a high level of labour force participation in the informal economy, and exclusionary social protection systems have been exacerbated by recent health and humanitarian crises that are unprecedented in the region's modern history. These crises have significantly affected socioeconomic indicators, reflected in the increased levels of vulnerability and poverty, combined with stagnant economic growth. Public sector responses have been made but have been insufficient to cushion the effect of these multiple crises and, in many cases, have revealed the extent of governments' fiscal conservatism that limited the role of the state in providing adequate support to its citizens. The chapter explores efforts to tackle the effects of compounded deprivation in terms of spatial segregation, a pervasively high informal labour force, gendered and racialized vulnerabilities and the education crisis, and explores the options that governments in the region face in terms of reversing the adverse effects of the coronavirus disease (COVID-19) pandemic, while sustaining the economic recovery. In a context of polarized political participation, discontent will inevitably lead to contention and, in some cases, instability and violence, if the governments choose to ignore the need for a socially just recovery.